1. ASSOCIATION OF METAL INDUSTRY, ELECTRICAL INDUSTRY, METAL MINES AND METALLURGY UPDATE ON MARKET DEVELOPMENTS AND PERSPECTIVES IN THE METAL AND ELECTRICAL INDUSTRY IN SERBIA Ljubiša Obradović, secretary Belgrad, November 18th 2014

2. NUMBER OF COMPANIES AND EMPLOYEES Source: Serbian Business Registers Agency Belgrad, November 18th 2014 Total of 104.972 employees Total of 5.082 companies Employment and number of companies in the metal and electrical industry 31.816 26.095 25.011 21.450 Metalworking Machine construction Electrical machinery and appliances Traffic objects 1

3. Belgrad, November 18th 2014 BASIC INDEX OF INDUSTRIAL PRODUCTION – METAL WORKING 2000.-2013. 2000.=100 2

4. Belgrad, November 18th 2014 BASIC INDEX OF INDUSTRIAL PRODUCTION – MACHINE CONSTRUCTION 2000.-2013. 2000.=100 3

5. Belgrad, November 18th 2014 BASIC INDEX OF INDUSTRIAL PRODUCTION – ELECTRICAL MACHINERY AND APPLIANCES 2000.-2013. 2000.=100 4

6. Belgrad, November 18th 2014 BASIC INDEX OF INDUSTRIAL PRODUCTION – TRAFFIC OBJECTS 2000.-2013. 2000.=100 5

7. Belgrad, November 18th 2014 IMPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY IN THE YEARS 2013 AND 2012 6

8. Belgrad, November 18th 2014 EXPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY IN THE YEARS 2013 AND 2012 7

9. Belgrad, November 18th 2014 BALANCE OF IMPORT AND EXPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY IN 2013 8

10. Belgrad, November 18th 2014 IMPORT OF METAL WORKING PRODUCTS IN THE YEARS 2013 AND 2012 9

11. Belgrad, November 18th 2014 IMPORT OF METAL WORKING PRODUCTS IN THE YEARS 2013 AND 2012 10

12. Belgrad, November 18th 2014 IMPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY BY IMPORTANT COUNTRIES IN THE YEARS 2013 AND 2012 11

13. Belgrad, November 18th 2014 EXPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY BY IMPORTANT COUNTRIES IN THE YEARS 2013 AND 2012 12

14. Belgrad, November 18th 2014 IMPORTANT IMPORT AND EXPORT PRODUCTS IN 2013 IN M. $ Import products Parts and accessories for vehicles........... 1.944 Motor vehicles............................................ 945 Other machines of general purpose........... 472 Machines for special purposes....................434 TV and radio transmitters........................... 384 Electrical motors and generators................ 319 Energy machines exept motors.................. 256 Equipment for the distr. of electricity........ 192 Other metal products..................................176 Parts and accessories for vehicles...............168 Farming machines....................................... 147 Other electrical equipment........................ 129 Measurement instruments and appliances 122 Export products Motorised vehicles.................................. 2.060 Other electrical equipment......................... 446 Electrical motors and generators............... 303 Home appliances......................................... 308 Other machines of general purpose........... 169 Parts and accessories for vehicles............... 168 Machines for special purposes................... 167 Arms and ammunitions............................... 166 Energy machines exept motors................... 163 Dishes, boilers and radiators...................... 146 Isolated cables and conductors...................134 Equipment for the distr. of electricity........ 128 TV and radio transmitters............................120 13

15. Belgrad, November 18th 2014 IMPORTANT IMPORTERS AND EXPORTERS IN 2013 IN M. $ Importers Fiat automobili Srbija............................... 1.359 Siemens doo Beograd............................... 252 Johnson controls automotive......................164 Dad draxlmaier automotive –Zrenjanin..... 115 Gorenje – Beograd i Valjevo....................... 110 Roaming electronic................................... 95 CT computers – Beograd............................. 84 PMC automotive Kragujevac........................ 82 Leoni wiring systems southest Prokuplje... 62 Grundfos manufacturing Bg......................... 42 Eaton Electric Doo Sr. Mitrovica................... 35 Yura corporation-Rača.................................. 23 Exporters Fiat аutomоbili........................................ 1.923 Gorenje Valjevo i Pazova, Zaječаr............. 313 Siemens doo Beograd................................ 215 Yura corporation-Rača............................... 169 Leoni Wiring System southeast doo Prokuplje.................................................... 144 Ball pakovanja Evropa Bg–Zemun............... 103 Dad Draxlmaier Automotive....................... 101 Roaming electronics.................................... 82 Grundfos manufacturing Bg........................ 66 Prvi Partizan Užice........................................ 64 Eaton Electric Doo Sr. Mitrovica................... 59 IGB Automotive In đ ija.................................. 48 14

16. Belgrad, November 18th 2014 IMPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY January-October 2014 15

17. Belgrad, November 18th 2014 EXPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY January- October 2014 16

18. Belgrad, November 18th 2014 BALANCE OF IMPORT AND EXPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY January-October 2014 17

19. Belgrad, November 18th 2014 IMPORT OF METAL WORKING PRODUCTS January-September 2014 18

20. Belgrad, November 18th 2014 EXPORT OF METAL WORKING PRODUCTS January-September 2014 19

21. Belgrad, November 18th 2014 IMPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY BY IMPORTANT COUNTRIES JANUARY-SEPTEMBER 2014 20

22. Belgrad, November 18th 2014 IMPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY BY IMPORTANT COUNTRIES JANUARY-SEPTEMBER 2014 21

23. Belgrad, November 18th 2014 IMPORTANT IMPORT AND EXPORT PRODUCTS JANUARY-SEPTEMBER 2014 IN M. $ Увозни производи Parts and accessories for vehicles.............. 1.406 Motor vehicles................................................ 696 Other machines of general purpose.............. 354 Machines for special purposes....................... 308 TV and radio transmitters.............................. 270 Energy machines exept motors...................... 257 Electrical motors and generators.................... 173 Measurement instruments and appliances... 146 Farming machines........................................... 133 Other metal products.................................... 136 Home appliances........................................... 122 Cables and conductors................................... 111 Извозни производи Motorised vehicles................................... 1.515 Other electrical equipment........................ 356 Electrical motors and generators................ 262 Home appliances........................................ 261 Parts and accessories for vehicles.............. 158 Energy machines exept motors................... 146 Machines for special purposes................... 127 Arms and ammunitions............................... 120 Dishes, boilers and radiators........................ 120 Other machines of general purpose.......... 104 Metal constructions................................... 108 Cables and conductors................................. 92 22

24. Belgrad, November 18th 2014 IMPORTANT IMPORTERS AND EXPORTERS JANUARY-SEPTEMBER 2014 IN M. $ Importers Fiat automobili Srbija............................... 874 Siemens doo Beograd............................... 339 Gorenje – Beograd i Valjevo....................... 77 Johnson controls automotive...................... 60 Dad draxlmaier automotive –Zrenjanin..... 66 Grundfos manufacturing Bg......................... 63 TE KO Kostolac Kostolac................................ 48 Leoni wiring systems southest Prokuplje... 45 RTB Bor Grupa RTB Bor.................................. 22 PIN Computers Novi Sad.............................. 21 TRS Europpe Petrovaradin............................ 14 Tetra PAK Production Beograd..................... 15 Ball pakovanja Evropa Beograd................ 13 Exporters Fiat аutomоbili........................................ 1.378 Siemens doo Beograd............................... 184 Gorenje Valjevo i Pazova, Zaječar......... 184 Yura corporation-Rača............................... 139 LBK i Livnica Kikinda................................... 96 Leoni Wiring System southeast doo Prokuplje.................................................... 92 Dad Draxlmaier Automotive....................... 88 Ball pakovanja Evropa Bg–Zemun............... 84 Grundfos manufacturing Bg....................... 66 Prvi Partizan Užice...................................... 44 Roaming electronics................................... 42 Fresenium medical care Vršac................... 40 23

25. Belgrad, November 18th 2014 IMPORTANT IMPORT AND EXPORT PRODUCTS WITH GERMANY – JANUARY- SEPTEMBER 2014 IN M. $ Import products Parts and accessories for vehicles................ 329 Personal cars……………………............................. 185 Boards, tins and alluminum bands……………….. 48 Parts for machines……..................................... 43 Motorised vehicles for goods transport.......... 34 Tractors and other towing vehicles….............. 32 Cables and conductors…….............................. 31 Harvesting, shearing and sorting machines…... 21 Siedecars and semi-sidecars (not motorised)….21 Copper wire………….......................................... 19 Export products Parts for machines…..................................... 182 Cables and conductors…............................... 177 Personal cars…………………............................. 58 Water heaters…............................................. 40 Medical instruments and appliances……...... 40 Boards, tins and alluminum bands…………….. 40 Parts and accessories for motorised vehicles 38 Refrigerators and freezers……........................ 37 Electrical transformators and static convertors 32 Switches, relais, fuses……………………............ 18 24

26. Belgrad, November 18th 2014 FOREIGN DIRECT INVESTMENTS (NETTO) AND IMPORTANT COUNTRIES 2005.-2013. IN M € 200520062007200820092010201120122013 Total1.2503.3221.8201.8241.3728601.826241768 Austria1694108493302341461555541 Norway1.296241133 Greece18367223733472410-29629 Germany15564550594033764348 Italy1549111334167421288244 Holland80-176-243371722002401131 Slovenia15015464713481-1085224 Russia1213284207741845 Luxemburg88518548678136423 Switzerland46-470826351487849 25

27. Belgrad, November 18th 2014 INDUSTRIALISATION Start of a renewed industrialisation programme of Serbia with three key instruments of technological policy for the revival of the Serbian industry: 1.REVITALISATON – consolidation and bringing to a functional state of existing production capacities, large companies and industrial systems. 2.REENGINEERING – technological modernisation and successive introduction of high-tec elements. 3.DEVELOPMENT – focus change in industrial production from low to high technologies. Industrial branches which have potential for future development: Automotive industry, road and track vehicles; Information technologies; Electronics; Agricultural mechanisation; Defense industry. 26

28. Belgrad, November 18th 2014 SUPPORT FOR FOREIGN INVESTORS Foreign investor, legal or physical entity, is enabled to: found his own company (up to 100% ownership) buy shares of an existing company get a licence (consession) for the use of natural ressources, goods in general use or be engaged in an activity of general interest in accordance to the law. get a permit to build (according to new legal regulations on planning and building), use and transfer (B.O.T. built, operate and transfer) a certain object, plant, as well as other infrastructural and communication objects. obtain any other property right of a foreign investor for realising his business interests. Be excluded from paying taxes on grounds of importing new equipment for his principal operations. Signed CEFTA-Agreement – Serbia is in the center of the CEFTA-zone where it has custom-free access to a market of 30 million people. The only country outside the Commonwealth of Independent States that has a signed Free Trade agreement with the Russian Federation, Belarus, Turky and the EFTA-countries. 27